Singapore Leads in Sustainability Reporting, Outperforming Global Benchmarks

Singapore has solidified its leadership in sustainability reporting, surpassing global benchmarks in six of twelve key indicators, according to KPMG’s 2024 Survey of Sustainability Reporting. The city-state is one of only seven countries where all top 100 companies report on sustainability, compared to a global average of 79%.

A significant finding from the survey reveals that 76% of Singapore’s top 100 companies recognize climate change as a financial risk, up from 49% in 2022 and notably above the global average of 55%. “This year’s data marks a pivotal moment for sustainability reporting in Singapore,” said Cherine Fok, Partner at ESG Consulting, KPMG in Singapore. “The increase from 49% in 2022 to 76% reflects a deepening corporate understanding of climate change’s pervasive impact on business resilience and value creation.”

Singaporean companies have also demonstrated enhanced governance leadership in sustainability, with board-level accountability rising from 35% in 2022 to 55% in 2024. This growing integration of sustainability governance at the leadership level showcases Singapore’s progress in embedding environmental, social, and governance (ESG) practices into corporate culture.

Furthermore, 84% of companies in Singapore now include ESG information in their annual reports, a significant increase from 68% in 2022, and well above the global average of 62%. This reflects a stronger commitment to transparency and integrated reporting.

However, there are areas for further improvement. Only 37% of Singapore companies sought third-party assurance for their sustainability data, falling below the global average of 54%. Additionally, the percentage of companies linking sustainability metrics to executive remuneration dropped from 67% in 2022 to 38% in 2024, though it remains higher than the global average of 30%.

“Independent assurance builds trust among investors and partners while clarifying an organization’s long-term ESG strategy,” added Fok, underscoring the importance of addressing these gaps.

Globally, KPMG’s survey has identified several emerging trends in sustainability reporting, including a rise in mandatory reporting driven by initiatives like the EU’s Corporate Sustainability Reporting Directive (CSRD), increased biodiversity reporting, and widespread adoption of the Task Force on Climate-related Financial Disclosures (TCFD) framework, with nearly 75% of G250 companies aligning their climate risk reporting with TCFD guidelines.

Looking ahead, Singapore’s alignment with global sustainability reporting standards, coupled with government initiatives such as the adoption of International Sustainability Standards Board (ISSB) standards in 2025, positions the nation to further its leadership in ESG practices. However, advancing assurance, biodiversity disclosures, and social risk reporting will be key to sustaining momentum.

“Singapore must pivot challenges into strengths, leveraging innovation, collaboration, and cultural transformation to embed sustainability at the core of business strategies,” concluded Fok. With continuous improvement and strategic focus, Singapore remains poised to lead in corporate sustainability practices globally.